Solar ROI vs. Stock Market: The 2025 Analysis

The Tax-Free Advantage

When comparing solar to stocks or property, most people forget one massive factor: Tax.

• Stock Market Returns: If you make $2,000 profit, you pay capital gains tax or income tax on dividends.
• Solar Savings: If you save $2,000 on your electricity bill, that is money in your pocket. You don't pay tax on savings.

To get $2,000 in your hand from the stock market (assuming a 30% tax rate), you actually need to earn roughly $2,850. Solar only needs to save you $2,000 to be worth $2,000.

The Numbers (2025)

Scenario: A $6,000 6.6kW system in Sydney saving $1,500/year.

• ROI: 25% per annum.
• Payback: 4 years.
• Risk: Extremely Low (Electricity prices are unlikely to drop to zero).

Compare this to the ASX200 historical average of ~9%. Solar offers a guaranteed, tax-free return that far outperforms most traditional investments, with far less volatility.